Trade fairs: gateway to new business for SMEs

In today's competitive world, reaching out to customers is one of the most challenging task for any organisation. But for an SME it is considered as an elephantine task as the sector is already reeling under various blows like limited capital and knowledge, inadequate and untimely banking finance, non-availability of suitable technology, low production capacity, ineffective marketing strategy, identification of new markets, constraints on modernisation & expansions, non availability of skilled labour, among several others. 

 

Although all aforementioned constraints are impeding the growth of SME sector which plays a vital role in augmenting the Indian economy, but of these inadequate knowledge of effective marketing is majorly detrimental to their business.

Marketing and Trade fairs

Marketing acts as a growth vehicle for a company or an enterprise. Opting for effective marketing, an organisation can create value for customers, create product awareness and build strong customer relationships. 

There are various marketing tools prevailing today, namely brochures, flyers, hoardings, email campaigns, website, and social networking. Trade fair participation has been one of the traditional forms of marketing for companies but is still going full throttle among SMEs. It is recognised as one of the most efficacious marketing tools across the globe.

Trade fairs and exhibitions are considered as the best platform for business networking as it comprises like-minded businesspeople to recognize, create, or act upon business opportunities.

Benefits of participating in Trade Fairs & Exhibitions for SMEs

Trade fair participation by organisations helps them to bring advances in their products/services, branding and penetration in the domestic and international arena. Involvement in such activities also intensifies self awareness of the new products and technologies available today in the market, noticing current market trends and future opportunities.

Active participation in trade fairs lessens the most challenging tasks for SMEs – reaching out to customers. Such events provide them a chance to establish, re-establish and strengthen relationship with existing and prospective clients.

Events and exhibitions enable SMEs to directly communicate with their target customers, besides accumulating business intelligence like marketing strategies, information related to competitors, translating into strong and increased customer base.

SMEs find participation in trade fairs as cost-effective too. They not only can exhibit at negotiated rates, but also visit these trade event for a paltry amount. Exhibiting has its own immediate benefits of visibility for self products and services, inviting attention from prospective and existing buyers that in turn can be fruitful for networking and exploring business opportunities, helping them generate leads. Even visiting these shows is equally important as it allows SMEs to proactively take note of advancements their counterparts have made, learn about the industry, find suppliers for their requirements and also network with buyers who throng these venues.

By having an opportunity to talk to number of attendees and customers at a trade exhibition, exhibitors get an opportunity to ask questions about the product that can help them to judge the needs and temperament of their customers & then position their products accordingly. This further ensures a longer customer relationship.SMEs participation in trade fairs also provides them with an opportunity to benchmark themselves and their products against more developed companies/firms.

Establishing new trade contacts and strengthening existing business relationship with the help of good presentations, exchanging business cards etc. is imperative at these trade expositions.

International trade fairs also witness the participation of distributors from across the world and this provides a great opportunity to Indian SMEs to build relationships with these distributors.

Organising Trade Fair – boost to country's economy

The profit of being a part of an event or exhibition is not only reaped by an organisation or enterprise but such activities contribute immensely to the economy of the host country. The country or city which plays host to a trade fair also gets benefited in a number of ways, such as:

- Growth in business tourism

- Hospitality industry promotion

- Infrastructure development

- Beefing up ties and understanding between two nations

- Promoting cultural exchange

Measures required to boost trade fair participation

Although trade fairs, expos, exhibitions hold great potential to give fillip to the country's economy but still there are a few loopholes existing in the system hampering such activities.

Space Availability: Adequate space for organising a trade event or exhibition is highly important as such huge events are organised in a large scale area. Creating more space is critical.

Encouraging SMEs for Trade Fair Participation: It is highly required that government provides considerable support to SMEs to further drive them to actively participate in trade fairs. The existing Market Development Assistance (MDA) scheme assists only approved and successful exporting companies but the benefits of the scheme should also be extended to small SMEs.

Intensified Budget allocation for Indian Exhibition and Trade Fair Industry: To be competitive in international market, the government should also increase the total Budget allocation in Indian Exhibition and Trade Fair Industry.

Conclusion

Basically, trade fair participation, for an enterprise, is aimed to generate leads for its products and expand reach to more and more customers. As trade fair participation act as a best way of branding and disseminating information about a product and enterprise, similarly without prior and effective trade show planning, research and well execution such engagement may also act as a burning a hole in a pocket and can lead to bad market reputation for future. So, prior planning, R&D and understanding about trade fair participation is equally and highly important to witness desired results.